| (a) At any time after a qualified domestic relations
order is filed and approved by the system, the alternate payee may
withdraw in a lump sum the accumulated contributions attributable
to the interest awarded to the alternate payee by the qualified domestic
relations order.
(b) The alternate payee may commence a life annuity
calculated in accordance with the terms of the plan and based on the
interest awarded to such alternate payee at such time when the participant:
(1) is eligible to retire;
(2) commences a disability retirement;
(3) dies and was eligible for a survivor death benefit
under §844.407 of the Government Code; or
(4) has attained the age at which the participant would
have been eligible to retire, if the participant withdrew his or her
account and was vested at the time of withdrawal.
(c) An alternate payee may commence an annuity under
subsection (b)(1) of this section even if the participant has not
retired or under subsection (b)(4) even if the participant is not
eligible for an annuity benefit.
(d) If the participant dies before commencing a benefit,
and the participant was eligible for a survivor annuity under §844.407
of the Government Code, then the alternate payee may commence an annuity
under subsection (b)(3) or withdraw the accumulated contributions
awarded under the qualified domestic relations order.
(e) If the participant dies before commencing a benefit,
and the participant was not eligible for a survivor annuity death
benefit under §844.407 of the Government Code, then the alternate
payee may withdraw the accumulated contributions associated with the
interest awarded under the qualified domestic relations order.
(f) The alternate payee must commence a distribution
when the participant attains age 70 1/2 or when the alternate payee
attains age 70 1/2, whichever is earlier. If the participant is still
a depositing member and not vested, then the alternate payee is not
required to commence an annuity or take a withdrawal. If the participant
is vested when a mandatory distribution is required, the alternate
payee is eligible for an annuity benefit.
(g) If the alternate payee dies before commencing a
benefit, and the participant is eligible for a survivor annuity benefit
under §844.407 of the Government Code or has commenced a disability
retirement, then the alternate payee's beneficiary must commence a
survivor annuity pursuant to §844.407 that is actuarially equivalent
to the deceased alternate payee's benefit awarded under the qualified
domestic relations order.
(h) If the alternate payee dies before commencing a
benefit and the participant is not eligible for a survivor benefit
under §844.407 of the Government Code, then the alternate payee's
beneficiary is eligible for a benefit equal to the accumulated contributions
awarded to the alternate payee at the time of the alternate payee's
death.
(i) If the alternate payee dies after commencing a
life annuity, then the alternate payee's beneficiary may be eligible
for a lump sum payment equal to the difference of the aggregate annuity
payments made to the alternate payee, less the accumulated contributions
associated with the interest awarded to the alternate payee, if any.
If no valid beneficiary exists, or if the alternate payee dies without
having a designated valid beneficiary, the benefit that would have
otherwise been payable to the beneficiary of the deceased alternate
payee is payable to the deceased alternate payee's surviving spouse,
or if no surviving spouse, to the deceased alternate payee's estate.
(j) Subsections (a) and (b) of this section will apply
to all domestic relations orders approved in accordance with this
chapter after January 1, 2018, and to such domestic relations orders
approved prior to that date as are construed to provide for such an
annuity or withdrawal.
(k) If a qualified domestic relations order is received
by the system after the participant begins receiving a retirement
annuity, the system shall divide the annuity into two single life
annuities; one payable to the alternate payee and the other payable
to the participant in accordance with the order and the rules of the
plan. The system shall compute the two single life annuities by determining
the actuarial present value of participant's current annuity as of
the date that the system has approved the order, and creating an annuity
payable to the alternate payee based on the actuarial present value
of participant's current annuity awarded under the order to the alternate
payee and creating a second life annuity payable to participant based
on the remaining actuarial present value of participant's current
annuity. Payments to the participant and to the alternate payee cease
upon their respective deaths.
(l) If a qualified domestic relations order is received
by the system after the participant begins receiving a retirement
annuity under which participant chose a dual life option, or a guaranteed
term option and the term has not expired, and designated a person
other than the alternate payee as beneficiary, then the system, in
computing the two single life annuities to be paid to the participant
and alternate payee respectively, shall first calculate the actuarial
present value of the participant's current annuity that is not attributable
to the beneficiary as of the date that the system has approved the
order. The interest of the beneficiary in the participant's current
retirement annuity will not be affected by the division of benefits.
The actuarial present value of the participant's current annuity that
is not attributed to the beneficiary is then divided into two single
life annuities. The single life annuity payable to alternate payee
is based on the actuarial present value of participant's current annuity
not attributable to the beneficiary awarded under the order to the
alternate payee, and the participant's single life annuity is computed
based on the remaining actuarial present value of participant's current
annuity not attributable to the beneficiary.
(m) The mortality assumption for alternate payees for
determining the actuarial equivalent of a benefit payable to an alternate
payee shall be the same as the mortality assumption for beneficiaries
as set forth in §103.1 of this title (relating to Actuarial Tables)
with regard to service retirements.
(n) If participant's employer grants a cost of living
adjustment pursuant to the terms of the plan, and if the alternate
payee has commenced an annuity, then the alternate payee is eligible
to receive a cost of living adjustment to his or her annuity.
(o) Notwithstanding any other provision of this chapter,
all distributions made under this chapter must be determined and made
in accordance with §401(a) of the Internal Revenue Code, including
but not limited to §401(a)(9); and §415.
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| Source Note: The provisions of this §109.12 adopted to be effective January 1, 1990, 14 TexReg 6677; amended to be effective April 15, 1996, 21 TexReg 2669; amended to be effective July 27, 2005, 30 TexReg 4215; amended to be effective July 21, 2009, 34 TexReg 4740; amended to be effective April 30, 2015, 40 TexReg 2281; amended to be effective January 1, 2018, 42 TexReg 2341; amended to be effective January 1, 2019, 43 TexReg 7182 |
